It’s been almost two years since the major amendments to the Employment Act 1955 (EA1955) came into effect on 1st January 2023.
And yet, I’m still hearing things like:
“My boss said the EA1955 is only for big companies, small companies like us don’t need to follow.”
“The EA1955 only covers people earning below RM4K.”
“The EA1955 doesn’t apply to us because we are F&B, our company have our own policy to follow.”
Apa benda ni….?!
So, once again, lemme break it down for clarity:
1. One major amendment was to the First Schedule [Subsection 2(1)], which previously excluded non-manual workers earning more than RM2,000 monthly. That part has been removed.
So, the EA1955 now apply to ALL employees in the private sector in Semenanjung Malaysia and WP Persekutuan Labuan, regardless of how much they earn, as long as they are under a Contract of Service.
2. About that RM4K confusion, while the EA1955 covers every employee in Semenanjung Malaysia and WP Labuan, certain clauses (like overtime claims, shift allowances, and termination benefits) only apply to non-manual workers earning RM4,000 or less monthly. For employees earning exactly RM4,000, these clauses still apply.
3. The EA1955 applies to all industries. Whether you’re in retail, manufacturing, aviation, logistics, or any other private sector field, the EA1955 applies to your company.
4. In Sabah and Sarawak, the Labour Ordinances currently only cover employees earning up to RM2,500 monthly. For those earning above that threshold, employment terms are based solely on what is written in your contract.
Hope this clarifies!
Happy weekend, everybody! Remember, building a compliant workplace is very important to fostering a harmonious workforce.
xoxoxo, AuntyHR
